Canola adds $7.10 on dry Argentina

Concerns about dry weather sapping yield in Argentina gave strong support to the price of canola and other crops on Wednesday.

March canola broke through the $620 technical resistance mark triggering more buying.

Rain in Brazil is causing minor delays in the early days of harvest. However, crop watchers continue to make incremental increases to their Brazil soy and corn production outlooks.

On the other hand, they continue to shave their forecasts for Argentina’s crops due to lack of rain. The declines in Argentina tend to be a little larger than the increases in Brazil.

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March canola closed at $624.80, up $7.10. November closed at $562.10, up $6.10.

Concerns about tight Canadian canola supply continue to provide a solid underpinning to the oilseed’s price.

Corn also rose on Wednesday despite news that U.S. ethanol production has fallen to its lowest level in more than two years. Operators are closing plants as weak demand and expensive corn slash profits.

The ethanol plant closures and declines in the number of cattle on feed in the U.S. have some analysts speculating that USDA will have to lower its consumption forecast and increase its year end corn stocks outlook.

Winnipeg ICE Futures (per tonne)

Canola Mar 13 $624.80, up $7.10 +1.15%

Canola May 13 $614.20, up $7.10 +1.17%

Canola Jul 13 $604.00, up $7.20 +1.21%

Canola Nov 13 $562.10, up $6.10 +1.10%

Milling Wheat Mar 13 $291.00, unchanged

Milling Wheat May 13 $294.00, unchanged

Milling Wheat Jul 13 $296.00, unchanged

Durum Wheat Mar 13 $312.40, unchanged

Durum Wheat May 13 $316.40, unchanged

Durum Wheat Jul 13 $319.40, unchanged

Durum Wheat Oct 13 $304.70, unchanged

Barley Mar 13 $241.50, unchanged

Barley May 13 $242.50, unchanged

Barley Jul 13 $243.00, unchanged

Barley Oct 13 $243.00, unchanged

Chicago (per bushel)

Soybeans (P) Mar 13 $14.7875 up 27.0 cents +1.86%

Soybeans (P) May 13 $14.675, up 27.75 +1.93%

Soybeans (P) Jul 13 $14.5725, up 27.75 +1.94%

Soybeans (P) Aug 13 $14.2625, up 24.25 +1.73%

Soybeans (P) Sep 13 $13.7525, up 22.0 +1.63%

Soybeans (P) Nov 13 $13.3275, up 20.0 +1.52%

Corn (P) Mar 13 $7.4025, up 10.75 +1.47%

Corn (P) May 13 $7.41, up 11.0 +1.51%

Corn (P) Jul 13 $7.32, up 11.5 +1.60%

Corn (P) Sep 13 $6.1675, up 6.25 +1.02%

Corn (P) Dec 13 $5.93, up 6.0 +1.02%

Oats (P) Mar 13 $3.62, up 2.0 +0.56%

Oats (P) May 13 $3.6925, up 2.0 +0.54%

Oats (P) Jul 13 $3.75, up 2.75 +0.74%

Oats (P) Sep 13 $3.7325, up 1.25 +0.34%

Oats (P) Dec 13 $3.71, up 2.25 +0.61%

Minneapolis (per bushel)

Spring Wheat Mar 13 $8.69, up 8.0 +0.93%

Spring Wheat May 13 $8.805, up 7.75 +0.89%

Spring Wheat Jul 13 $8.8875, up 6.0 +0.68%

Spring Wheat Sep 13 $8.905, up 8.0 +0.91%

Spring Wheat Dec 13 $8.93, up 6.25 +0.70%

The Bank of Canada noon rate for the loonie was 99.67 cents US, down slightly from 99.71 cents on Tuesday.

The U.S. greenback was $1.0033 Cdn.

Nearby crude oil in New York rose 37 cents to $97.94 per barrel.

The U.S. economy unexpectedly contracted in the fourth quarter, according government figures released today, with gross domestic product falling at a 0.1 percent annual rate, its weakest performance since it emerged from recession in 2009.

That pressured stock markets lower, but analysts said the drag was due to things like reduced military spending and Hurricane Sandy. Offsetting the bad news were reports of stronger consumer spending and business investment and of momentum in job growth.

The Toronto Stock Exchange’s S&P/TSX composite index closed 36.12 points, or 0.28 percent, lower at 12,794.44.

The Dow Jones industrial average ended down 44.00 points, or 0.32 percent, at 13,910.42.

The Standard & Poor’s 500 Index was down 5.88 points, or 0.39 percent, at 1,501.96.

The Nasdaq Composite Index was down 11.35 points, or 0.36 percent, at 3,142.31.

The U.S. Federal Reserve said today it would continue its easy money policy and said the economic pullback in the last quarter was likely temporary and that modest job growth would likely continue.